Most small business owners got into business because they have passion and drive; however, this does not necessarily mean that just because you own a business and have employees, that you are an expert in conflict resolution. You started with an idea and now — you have difficult conversations with employees about performance, attitude, or behaviour.

Here’s the hard truth, avoiding those tough conversations doesn’t make the problems go away. It makes them worse. And left unchecked, they quietly eat away at your business in ways you may not even notice. 

The Hidden Cost of Avoiding Conflict

It’s easy to hope workplace tension will work itself out, but the numbers suggest otherwise. According to a 2023 survey by the Mental Health Commission of Canada, 47% of working Canadians report high levels of work-related stress, often linked to poor communication and unresolved conflict in the workplace (MHCC, 2023). 

The Canadian Centre for Occupational Health and Safety (CCOHS) also notes that unresolved workplace conflict is one of the leading contributors to toxic work environments, impacting mental health and increasing the risk of harassment complaints (CCOHS, 2024).

Small Businesses Feel It More

In a large organization, losing an employee or dealing with conflict might be absorbed by the other workers or the systems in place, making it less noticeable. However, in a small business, every person matters. A disengaged employee, or worse — an entire team avoiding each other, or unable to communicate effectively — can be detrimental to operations.

Yet many small business owners hesitate to intervene, often telling themselves:

• “It’s not that bad.”
• “They’ll sort it out.”
• “I don’t want to be the bad guy.”
• “I’m not sure what to say.”

Unfortunately, the truth is, hoping for the best is not a leadership strategy — it’s a liability.

Why Tough Conversations Get Avoided

If you’ve ever delayed addressing an employee issue, you’re not alone. In fact, a recent survey by Canadian HR Reporter found that 68% of Canadian managers admit they avoid difficult conversations with employees, largely due to fear of conflict or lack of confidence in how to handle it sensitive situations (Canadian HR Reporter, 2023).

But while the short-term discomfort of having the conversation feels intimidating, the long-term cost of silence is causing significant damage to your team. Avoiding the issue sends the message that poor performance, attitude, or behaviour is acceptable, and it breaks down the culture you’ve worked hard to build.

The Case for Speaking Up

When handled properly, tough conversations aren’t about confrontation, they’re about clarity, accountability, and protecting your team and business.

According to Morneau Shepell (now TELUS Health), companies that promote open communication and address workplace issues early experience lower turnover rates and higher employee engagement, both of which are critical for small businesses trying to stay viable and competitive (TELUS Health, 2023).

Think of tough conversations like botox; it’s the preventive maintenance — uncomfortable, maybe — but a whole lot cheaper and easier than getting a facelift, or – fixing a major problem down the road.

How to Have the Conversation (Without Losing Sleep Over It)

If the thought of addressing an employee issue makes your stomach turn, you’re not alone. But like most things in business, having a plan helps. Here’s a simple roadmap:

1. Prepare, Don’t Improvise
Collect specific examples of the issue. Be clear about what behaviour or performance is concerning and how it impacts the business or team.

2. Be Direct, But Respectful
Avoiding the truth does no one any favours. Be clear, professional, and focused on facts, not feelings.

3. Listen to Understand
Sometimes, issues stem from misunderstandings, lack of training, or personal challenges. Give the employee a chance to share their perspective.

4. Focus on Solutions
The goal isn’t punishment, it’s improvement. Develop a plan for next steps, clear expectations, and timelines for progress.

5. Document the Conversation
Keep it compliant by writing it down. Having clear documentation protects both you and your employee if issues continue.

Silence Is Risky Business

At the end of the day, being a good leader means having the hard conversations — even when you’d rather avoid them. For small businesses, where culture and performance hinge on every team member, silence isn’t harmless — it’s a risk to your business, your team, and your reputation.

The good news? You don’t have to do it alone.

Perk HR helps small businesses across B.C. navigate these tough conversations, from coaching and script development to formal policies and support. We help you tackle issues early, before they become costly and stressful, or turn into legal problems.

Final Thoughts

Avoiding tough conversations feels easier in the moment — but it’s one of the most expensive mistakes a small business can make. With the right approach and support, those conversations can become a powerful tool for building a stronger team, a healthier culture, and a more resilient business.

The problem isn’t the conflict — it’s the silence. Let’s fix that.

Citations:

• Mental Health Commission of Canada. (2023). National Standard of Canada for Psychological Health and Safety in the Workplace. Retrieved from mentalhealthcommission.ca
• Canadian Centre for Occupational Health and Safety (CCOHS). (2024). Workplace Conflict and Mental Health. Retrieved from ccohs.ca
• Canadian HR Reporter. (2023). Most Managers Avoid Difficult Conversations: Survey. Retrieved from hrreporter.com
• TELUS Health (Morneau Shepell). (2023). Workplace Mental Health Solutions. Retrieved from telushealth.com